I don’t think that’s right. Ghostty has its own TERM=xterm-ghostty value, which surely it wouldn’t need if it supported nothing more than ECMA-48/VT100.
That's usually only necessary for more questionable things that was niche for a reason, like file transfer, images, audio, and rediscovering the root cause of old security issues like this all over again: https://web.archive.org/web/20030302210517/http://www.digita...